China Healthcare Marketing takeaways: solid fundamentals mismatched by weak market performance

Research evidence excerpt

China Healthcare Marketing takeaways: solid fundamentals mismatched by weak market performance

18 June 2026

Equity Research Report

China Healthcare EquitiesBiotechnology

Marketing takeaways: solid fundamentals mismatched

by weak market performance China

◆ China healthcare market over-corrected post-ASCO Linda Shu*, PhD (Reg. No. S1700522120001)

Head of China Healthcare Research

◆ Positive long-term momentum but tampered by short-term HSBC Qianhai Securities Limited

linda.y.l.shu@hsbcqh.com.cn

liquidity and policy overhang +86 755 88983246

Cindy Chai* (Reg. No. S1700523040001)

◆ Preferred stocks: Innovent, Wuxi Biologics, CSPC (all Buy rated) Analyst, China Healthcare Research

HSBC Qianhai Securities Limited

cindy.x.r.chai@hsbcqh.com.cn

We had over 20 online and offline client meetings post our Shanghai biotech trip. We +86 21 5066 2005

see increasing interest from overseas investors in China’s innovative drug industry. Oliver Wang* (Reg. No. S1700523100003)

Analyst, China Healthcare Research

Below are the key takeaways. HSBC Qianhai Securities Limited

oliver.h.y.wang@hsbcqh.com.cn

Overcorrected; waiting for next inflection point and re-rating catalysts. Following +86 21 5066 2058

the ASCO conference, the H-share and A-share healthcare index corrected by -3.7%/-

2.4%, contrasting with the 2025 performance of +4.0%/-1.4%. During our biotech trip * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations

and marketing meetings, we see that investors expect positive delivery of industry

fundamentals, yet they remain conservative on the following: 1) business development

(BD) valuation methods are not aligned, thus impacting mega BD catalyst for valuation.

Platform BD valuation is in a big debate.